Mumbai

In a huge setback to the Maharashtra government, the Bombay high court has quashed a rule that allowed 33% additional floor space index (FSI) to builders executing projects in suburban Mumbai in lieu of a fee.

A division bench of Justices F I Rebello and Amjad Sayed held that the state was not empowered to levy such a premium under the existing rules, including the Maharashtra Regional Town Planning Act.

In an order that will cheer builders, the HC also struck down a BMC rule that asked builders to pay a premium if they sought exemption from FSI for common areas in a building like lifts and staircases. While introducing the new rule hiking FSI in the suburbs to 1.33 in 2008, the state finance minister had set a target of Rs. 1,400 crore for that year. The premium was to be charged on the basis of the ready reckoner rates for the area—from Rs. 4,000 per square metre in Manori to Rs. 23,000 psqm in posh Bandra.

The government attempted to justify the premium on the grounds that it intended to put back the money collected to fund a special package for minorities as well as augment civic infrastructure. However, this failed to cut much ice with the high court. “Once there is a separate development fund, it is not open for the government to levy a fee to provide amenities,” said the judges.

There was a sliver of hope for the government though, as the high court dismissed all other points of challenge to the FSI rule by the petitioner— including the plea that the hiked FSI would choke the inadequate infrastructure in the suburbs. The high court threw out the objections, saying by availing of transfer of development rights (TDR) of 1 FSI, the
development rules already allow buildings in the suburbs to be constructed with an FSI of maximum 2.

The 2008 rule was set aside solely on a technicality that the government had no power to charge a premium. Following the verdict, the judges added in a humourous aside that the state could consider giving the FSI for free without a premium. In 2008, the government had amended the Development Control regulations and allowed additional construction rights by hiking the FSI in Mumbai suburbs from 1 to 1.33. This meant that every building in the suburbs was eligible for additional construction rights up to 0.33 FSI.

The public interest litigation filed by two city residents had opposed the grant of additional FSI as a largesse that would change the character of the city and put tremendous strain on the environment and infrastructure. The potential TDR available for transfer in the island city is estimated to be around 19 crore sq ft. The 33% hike in FSI, available for every building in the suburbs, would result in construction rights in excess of 75 crore sq ft, the PIL claimed.

Popularity: 3% [?]